Dow % Bullish Indicator for 12/1/09 close

The Dow % bullish indicator stood at 47.89 at the close on Tuesday. This is almost a return to the bullish strength shown pre-Dubai. A big down move in the Dow today could easily reverse this number back to bearish again as many Dow stocks hovered around 0 for the previous two days. There were pull backs to support levels across most of the Dow and Tuesday featured a nice bounce off these levels. Volume is still not great on Dow stocks, but volume does tend to be higher than last week. Given past history of the indicator and the current reading, I would say bulls should not see a big downside risk, but there is precedence for the Dow to go in either direction after a two or three day period of negative readings on the Dow % bullish indicator. Of course we are either on a shoulder or a on the way to nice new highs once again on the general markets. The Russell 2000 has been the weakest cap of the markets during the November move. Today, the Russell 2000 leads. All things considered, I think there is more of a case for an afternoon rally in the markets than a case for a sell-off. Only time will tell.